Aliansce has 15% to 20% of BrMalls shareholder's support for the merger



Aliansce Sonae's new merger proposal for BrMalls has the support of at least 15% to 20% of BrMalls' shareholder base. A promising starting point, but which still does not guarantee approval of the deal in a meeting as it requires 50% plus one of the total capital (not just those present at the future session). The percentage favourable to the transaction includes asset managers Oceana, Truxt and SPX plus Aliansce's own stake in the rival and the share of the Canadian pension fund CCPIB, an investor in Aliansce, and at the end of January increased the acquisition of BR malls stakes.

In the last three months, Aliansce's management met with more than 200 BrMalls shareholders, representing relevant coverage of the competitor's investor base. The fact that it raises the offer and then immediately asks for a meeting to be called for voting indicates that Aliansce is confident that it already has enough support for the approval and/or that there is room to get more votes proposal has been released. Another reading is that the content was leaked to the press earlier than expected and therefore became difficult for Aliansce to push back. Distancing There are also signs of estranging between the controllers of both companies. More than 24 hours after the new offer became public, the management of BrMalls still had not received a formal communication from Aliansce about it. Behind the scenes, it is said that they only learned about the proposal's content from the press on Sunday.

Two months ago, Aliansce proposed a merger in which each party would have a 50% stake in the new group. In the new offer, Aliansce increased the cash payment by R$500 million, reaching R$1.85 billion, and accepted a smaller share of the combined business: 48.92% x 51.08%. BrMalls shareholders would also receive R$1.35 billion in cash.